Capital Acquisition Tax on Gift from In Laws

Hi All,

My wife and I are currently in the process of buying a house from her parents. The house is valued at €300k but we are buying at a lower price agreed at €250k.
My father in law will put the remaining €50k down as gifted to my wife and I. He will put down the gift of being €25k each, so that the house can be in both of our names.
As far as I'm aware my wife can have this €25k without any tax implications as it is from her father. However, I will be liable for tax on the €25k for me.
As I understand it (and I could be wrong) I am allowed a gift from my Father in Law of €16,250 without tax implications.
I am a bit confused about all of this but does that mean the remaining €8750 will be taxed at 33% ?

Thanks in advance

Oneila1 said:

Hi All,

My wife and I are currently in the process of buying a house from her parents. The house is valued at €300k but we are buying at a lower price agreed at €250k.

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Rather than declare the €50,000 as a gift, could this amount be structured as a loan instead?

Buy the house for €300,000. Consideration is: €250,000 in cash, €50,000 via a loan.

Your parents-in-law can gift €3,000 each to you and €3,000 each to your wife under the small gift exemption every year.

That would have the loan paid off in approximately 4 years and means that you keep your Group C threshold intact and your wife keeps her Group A threshold.